Largest Defense Deal in Latin America
The K2 tank "Black Panther," a flagship of Korea's defense industry, has been exported to Latin America for the first time. This marks the largest-ever defense export to the region, with the contract value alone exceeding 2 trillion won, following previous exports of armored vehicles and other ground weapon systems.
On the 2nd, Hyundai Rotem's K2 tank was exhibited at the Korea International Defense Industry Exhibition held at Gyeryongdae, Chungnam. Photo by Kang Jinhyung aymsdream@
According to the government on December 10, Hyundai Rotem and the Peruvian Army's maintenance depot signed a "Comprehensive Agreement on Tanks and Armored Vehicles" on December 9 (local time) at the Peruvian Army Headquarters in Lima, Peru. Under this agreement, the Peruvian Army will introduce a total of 195 ground vehicles by next year, including 54 K2 tanks and 141 K808 wheeled armored vehicles, also known as "Baekho." The contract is reportedly worth 1.9 billion dollars (2.79 trillion won).
Following the comprehensive agreement, Peru plans to sign two implementation contracts to sequentially introduce the K2 tanks. From 2029 to 2040, Peru intends to establish local production facilities for licensed manufacturing. The goal is to achieve a local parts procurement rate of over 30%. However, due to insufficient local production facilities and assembly technology, further negotiations through the implementation contracts are expected to be necessary.
Previously, in May last year, Hyundai Rotem signed a contract with the Peruvian Army to supply 30 K808 vehicles, with a contract amount of approximately 60 million dollars (about 8.28 billion won). In November last year, Hyundai Rotem also signed an agreement with Peru to supply additional ground weapons, including K2 tanks and wheeled armored vehicles. After further negotiations, a binding agreement was reached on this day. The comprehensive agreement reportedly includes details such as quantities, total budget, localization plans, education and training, and logistics support.
This agreement is significant as it marks the successful entry of the K2 tank into Latin America, following its deployment in Europe. Peru is the second country to import the K2 tank after Poland. Peru is currently pursuing a modernization plan for its army's ground equipment to strengthen national security and defense technology. The strengths of Korean defense companies-advanced technology, high cost-effectiveness, and rapid delivery-have proven successful not only in major Eastern European countries but also in Latin America.
The K2 tank, along with the K9 self-propelled howitzer, is a representative domestically developed ground weapon system, recognized for its world-class mobility, firepower, and survivability. It has been deployed in the Korean military since 2014. The K2 is equipped with a 120mm smoothbore gun and a machine gun, and its 1,500-horsepower engine allows it to reach speeds of up to 70 km/h. It is also capable of fording rivers up to 4 meters deep using its snorkeling function. Hyundai Rotem signed a basic contract in 2022 to export 1,000 K2 tanks to Poland, its first export destination, and has finalized the export of 360 units through two implementation contracts in 2022 and this year.
The K808 armored vehicle has been deployed in the Korean military since 2018. It carries a crew of two and ten infantry soldiers, and is armed with either a K4 automatic grenade launcher or a K6 heavy machine gun. Its maximum speed is 100 km/h, and it is equipped with tactical tires that allow it to continue driving at over 48 km/h even if the tires are damaged.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
